Inside Cummins, Inc.’s Upcoming Second Quarter Earnings Release

S&P 500 (NYSE:SPY) component Cummins, Inc. (NYSE:CMI) will unveil its latest earnings on Tuesday, July 26, 2011. Cummins, Inc. is a company engaged in the design, manufacturing and distribution of diesel and natural gas engines and related technologies. Its services to markets worldwide include electric power generation systems and engine-related component products.

Cummins, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.01 per share, a rise of 60.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.78. Between one and three months ago, the average estimate moved up, and has risen from $1.96 during the last month. For the year, analysts are projecting net income of $8.13 per share, a rise of 57.3% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 31 cents, reporting profit of $1.75 per share against a mean estimate of net income of $1.44. In the fourth quarter of the last fiscal year, the company exceeded forecasts by 13 cents with profit of $1.84 versus a mean estimate of net income of $1.71.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $4.22 billion in revenue this quarter, a rise of 31.5% from the year ago quarter. Analysts are forecasting total revenue of $17.29 billion for the year, a rise of 30.7% from last year’s revenue of $13.23 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 36%, with the biggest boost coming in the most recent quarter when revenue rose 55.8% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold while it rose 34.1% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

Competitors to Watch: Caterpillar Inc. (NYSE:CAT), Brunswick Corporation (NYSE:BC), Navistar Intl. Corp. (NYSE:NAV), Briggs & Stratton Corp. (NYSE:BGG), China Yuchai Intl. Ltd. (NYSE:CYD), PACCAR Inc (NASDAQ:PCAR), BorgWarner Inc. (NYSE:BWA), REGAL-BELOIT CORPORATION (NYSE:RBC), and Generac Holdings Inc. (NYSE:GNRC).

Stock Price Performance: During June 21, 2011 to July 20, 2011, the stock price had risen $9.23 (9.5%) from $97.52 to $106.75. The stock price saw one of its best stretches over the last year between March 22, 2011 and April 1, 2011 when shares rose for nine-straight days, rising 9.4% (+$9.58) over that span. It saw one of its worst periods between August 18, 2010 and August 26, 2010 when shares fell for seven-straight days, falling 11% (-$8.92) over that span. Shares are down $2.73 (-2.5%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!

More from The Cheat Sheet